KRS 355.9-316: Continued perfection of security interest following change in governing

law.

(1) A security interest perfected pursuant to the law of the jurisdiction designated in

KRS 355.9 -301(1), 355.9 -305(3), 355.9 -3061(4), or 355.9 -3062(2) rem ains

perfected until the earliest of:

(a) The time perfection would have ceased under the law of that jurisdiction;

(b) The expiration of four (4) months after a change of the debtor's location to

another jurisdiction; or

(c) The expiration of one (1) year after a transfer of collateral to a person that

thereby becomes a debtor and is located in another jurisdiction.

(2) If a security interest described in subsection (1) of this section becomes perfected

under the law of the other jurisdiction before the ea rliest time or event described in

that subsection, it remains perfected thereafter. If the security interest does not

become perfected under the law of the other jurisdiction before the earliest time or

event, it becomes unperfected and is deemed never to have been perfected as

against a purchaser of the collateral for value.

(3) A possessory security interest in collateral, other than goods covered by a certificate

of title and as -extracted collateral consisting of goods, remains continuously

perfected if:

(a) The collateral is located in one jurisdiction and subject to a security interest

perfected under the law of that jurisdiction;

(b) Thereafter the collateral is brought into another jurisdiction; and

(c) Upon entry into the other jurisdiction, the secu rity interest is perfected under

the law of the other jurisdiction.

(4) Except as otherwise provided in subsection (5) of this section, a security interest in

goods covered by a certificate of title which is perfected by any method under the

law of another jurisdiction when the goods become covered by a certificate of title

from this Commonwealth remains perfected until the security interest would have

become unperfected under the law of the other jurisdiction had the goods not

become so covered.

(5) A security interest described in subsection (4) of this section becomes unperfected

as against a purchaser of the goods for value and is deemed never to have been

perfected as against a purchaser of the goods for value if the applicable

requirements for perfection under KRS 355.9 -311(2) or 355.9-313 are not satisfied

before the earlier of:

(a) The time the security interest would have become unperfected under the law

of the other jurisdiction had the goods not become covered by a certificate of

title from this Commonwealth; or

(b) The expiration of four (4) months after the goods had become so covered.

(6) A security interest in chattel paper, controllable accounts, controllable electronic

records, controllable payment intangibles, deposit accounts, letter -of-credit rights,

or investment property which is perfected under the law of the chattel paper's

jurisdiction, the controllable electronic record's jurisdiction, the bank's jurisdiction,

the issuer's jurisdiction, a nominated person's jurisdiction, the secu rities

intermediary's jurisdiction, or the commodity intermediary's jurisdiction, as

applicable, remains perfected until the earlier of:

(a) The time the security interest would have become unperfected under the law

of that jurisdiction; or

(b) The expiration of four (4) months after a change of the applicable jurisdiction

to another jurisdiction.

(7) If a security interest described in subsection (6) of this section becomes perfected

under the law of the other jurisdiction before the earlier of the time or the end of the

period described in that subsection, it remains perfected thereafter. If the security

interest does not become perfected under the law of the other jurisdiction before the

earlier of that time or the end of that period, it becomes unperfect ed and is deemed

never to have been perfected as against a purchaser of the collateral for value.

(8) The following rules apply to collateral to which a security interest attaches within

four (4) months after the debtor changes its location to another jurisdiction:

(a) A financing statement filed before the change pursuant to the law of the

jurisdiction designated in KRS 355.9 -301(1) or 355.9 -305(3) is effective to

perfect a security interest in the collateral if the financing statement would

have been effective to perfect a security interest in the collateral if the debtor

had not changed its location; and

(b) If a security interest that is perfected by a financing statement that is effective

under paragraph (a) of this subsection becomes perfected under th e law of the

other jurisdiction before the earlier of the time the financing statement would

have become ineffective under the law of the jurisdiction designated in KRS

355.9-301(1) or 355.9-305(3) or the expiration of the four (4) month period, it

remains perfected thereafter. If the security interest does not become perfected

under the law of the other jurisdiction before the earlier time or event, it

becomes unperfected and is deemed never to have been perfected as against a

purchaser of the collateral for value.

(9) If a financing statement naming an original debtor is filed pursuant to the law of the

jurisdiction designated in KRS 355.9 -301(1) or 355.9-305(3) and the new debtor is

located in another jurisdiction, the following rules apply:

(a) The financing statement is effective to perfect a security interest in collateral

in which the new debtor has or acquires rights before or within four (4)

months after the new debtor becomes bound under KRS 355.9 -203(4), if the

financing statement would have been e ffective to perfect a security interest in

the collateral if the collateral had been acquired by the original debtor; and

(b) A security interest that is perfected by the financing statement and which

becomes perfected under the law of the other jurisdicti on before the earlier of

the expiration of the four (4) month period or the time the financing statement

would have become ineffective under the law of the jurisdiction designated in

KRS 355.9 -301(1) or 355.9 -305(3) remains perfected thereafter. A security

interest that is perfected by the financing statement but which does not

become perfected under the law of the other jurisdiction before the earlier

time or event becomes unperfected and is deemed never to have been

perfected as against a purchaser of the collateral for value.